Determine what happens to the variance of the error term/ Econometrics
suppose you are estimating a simple linear regression model.
(a) If you multiply all the x values by 20, but not the y values, what happens to the parameter values beta1 and beta2 what happens to the least squares estimates b1 and b2? what happens to the variance of the error term?
(b)If you multiply all the y values by 50, but not the x values, what happens to the parameter values beta1 and beta2 what happens to the least squares estimates b1 and b2? what happens to the variance of the error term?
